The United States Oil and Gas Industry

Paper Summary:

This paper explains, using Porter Five Forces Model, that there is a limited threat of new entrants cutting into Shell, Mobil, Texaco, Gulf, and Exxon's market share because the industry is fairly oligopolistic, with only a few giant firms controlling the majority of the industry even on the global scale. The author points out that the world's oil-producing nations are very influential in the supply and demand factors associated with oil production and consumption through the Organization of Oil Producing Countries (OPEC). The paper stresses that, as globalization increases the world's demand for oil, it will be critical for the oil-producing nations to maintain a steady cost per barrel, while, at the same time, meeting the high production demands because there are few new technological advances or regulatory controls available to overshadow the basic economic formula of supply and demand. OPEC promises to control pricing for the industry. Tables.

Table of Contents
Introduction
Industry Overview
Five Forces Model
Major Competitors and Strategic Group Mapping
Future Trends
Opportunities and Threats
Conclusion
Appendix A: Oil Industry

From the Paper:

"The oil and gas industry are driven by the price of crude oil. The industry was shaped in the late 1990's when the price of oil lagged around $10 a barrel forcing many smaller independent companies into seeking bankruptcy protection and the larger oil companies like Shell, Mobil, Texaco, Gulf and Exxon to look for partners through acquisition or merger. This entailed reduced refining and exploration activities and less gas production. However, today, the industry must contend with a new global economy that has increased demand for energy to record levels, which has allowed a robust rebound in the oil and gas industry. "Oil prices advanced closer to $50 a barrel Monday as domestic and foreign supply concerns persist amid strong global demand". "

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